1. If the domestic and the foreign interest rates are 12% and 10% respectively, then according to the interest rate parity condition, which of the following is true?
   1. Foreign currency is expected to appreciate by 20%
   2. Foreign currency is expected to appreciate by 2%
   3. Foreign currency is expected to depreciate by 20%
   4. Foreign currency is expected to depreciate by 2%
   5. Foreign interest rates are expected to increase by 2%

I just confused about b and d